LIHTC Capital
Construction/Permanent Loan Business Terms

Purpose: NorthMarq Capital, Inc./AmeriSphere Multifamily Finance, L.L.C. and United of Omaha’s Construction/Permanent Loan Program provides the entire financing package for qualified sponsors to develop multifamily projects that qualify for inclusion in the Low Income Housing Tax Credit (LIHTC) program.
Recourse: Full recourse is required during Construction Loan. Recourse is not required for Permanent Loan, except for standard exceptions for events related to fraud and misapplication of funds.
Minimum Loan Amount: $_________.
Loan Terms: Up to twenty-four months for the Construction Loan (plus a six-month extension option), and up to thirty years for the Permanent Loan.
Amortization: Interest only during the Construction Loan and up to thirty years for the Permanent Loan.
Construction Loan-to-Cost: Up to 80% as determined by Lender.
Permanent Loan-to-Value: Up to 90% as determined by Lender.
Debt Service Coverage: Permanent First Mortgage Debt Service Coverage shall not be less than 1.15x. Total Debt Service Coverage, including Lender approved subordinate debt, shall not be less than 1.05x.
Interest Rate: Fixed at the time of Loan Commitment.
Loan Fees:

Application Fee: $_______, which is used to pay cost of Market Study, Appraisal, and Environmental Assessment (Phase I). At closing, remaining balance of Application Fee will be transferred to closing agent and may be used to pay other transaction closing costs.

Origination Fees: ___% of the Construction Loan Amount and ___% of the Permanent Loan Amount.
Ownership: Domestic, single-asset entities, with qualifying domestic principals.
Prepayment: Prepayment in full is available at any time, but is subject to prepayment premium based on yield maintenance formula or defeasance.
Occupancy: At least 20% of units must be leased to households earning 50% or less than Area Median Income (AMI), or at least 40% of units are leased to households earning 60% or less than AMI.
Escrows: Required for real estate taxes and property insurance premiums.
Replacement Reserve: Minimum annual reserve is $250 per unit.
Assumptions: Transfer of title to the Property is permitted with Lender’s prior approval of the new borrowing entity and payment of 1% transfer fee.
Subordinated Debt: Properly documented “soft” subordinate debt may be permitted with Lender’s prior approval.